Question 1
You have been asked to do the bookkeeping for KidKare Inc. for the last few days of December while their regular bookkeeper is ill. KidKare Inc. began operations on July 1, 2010. It provides childcare services Monday through Friday, except for holidays. End of month adjusting entries have been made for July through November. No entries have been made since Friday, December 24th. KidKare has a December 31st fiscal year end, but prepares monthly interim financial statements. KidKare was closed on Friday, December 24th. Laken Henry, manager and principle shareholder, provides you with the following: Trial Balance as of December 24, 2010 Ref. # Account Title Debit Credit 101 Cash $ 11,906 110 Accounts Receivable 240 112 Allowance for Uncollectible Accounts $ 122 120 Supplies on Hand 1,025 135 Prepaid Insurance 420 145 Other Prepaids 150 150 Office Equipment 3,400 155 Accumulated Depreciation?Office Equipment 565 160 Play Equipment 9,200 165 Accumulated Depreciation?Play Equipment 375 170 Van 25,000 175 Accumulated Depreciation?Van 1,600 190 KidKare Trademark 210 201 Accounts Payable 280 240 Income Taxes Payable 220 260 Notes Payable, 6% due through 2013 15,687 310 Common Stock, $1 par value (20,000 shares) 20,000 315 Additional Paid-in Capital 10,000 410 Childcare Revenue 60,600 425 Interest Revenue 61 515 Salaries & Wages Expense 42,500 525 Rent Expense 5,400 530 Utilities Expense 940 532 Insurance Expense 300 535 Supplies Expense 5,040 540 Bad Debt Expense 202 550 Depreciation Expense 2,540 560 Miscellaneous Expense 132 570 Interest Expense 427 580 Income Tax Expense 478 Totals $109,510 $109,510 An examination of the Chart of Accounts revealed the following additional accounts: 140 Prepaid Rent 210 Revenue Received in Advance 215 Utilities Payable 220 Salaries & Wages Payable 235 Interest Payable 245 Dividends Payable 250 Other Short-term Obligations 340 Retained Earnings 380 Dividends 390 Income Summary 430 Miscellaneous Revenue Information after December 24th: a. On December 27, KidKare received $1,920 ($40 per day per child for 12 children for 4 days) from parents for child care services for the week of December 28. (KidKare was closed on Friday, December 31st.) b. On December 28, KidKare ordered 10 folding chairs for $28 each from Seats-Here Company to be delivered and paid for on January 4th. c. On December 29, KidKare paid $270 for the purchase of food snacks (supplies) for the children. d. On December 30, KidKare?s Board of Directors declared a $.05 per share dividend on the 20,000 shares outstanding. The dividend will be paid on January 11, 2011. e. On December 30, KidKare received a $200 check from the parents of one of the children for care the week of January 3th through 7th. f. On December 30, KidKare paid $900 rent for the building for the month of January 2011. g. On December 30, KidKare received the electricity bill of $230 for December. The bill was paid January 4, 2011. h. On December 30, Kidcare noted that the parents of two children had not paid the $320 they owed for child care services for the week of December 27-30 ($40/day per child for four days). Kidcare billed the parents. i. A physical count revealed $588 of supplies was left on hand on December 30. j. On January 3, KidKare received and paid the phone bill of $72 for December. k. On Monday, January 3, KidKare paid payroll of $1,200 in wages and $500 in salary for the week of December 27 through 31 (including the paid holiday, Friday). l. On January 5, KidKare received its December bank statement from National Sovereign Bank. The $5 monthly checking account fee had been deducted and the $14 of interest earned on its savings account had been added to KidKare?s accounts. m. The December 23rd balance in ?Other Prepaids? contains $150, paid December 1, for water and sewer service for the three months of December, January and February. n. The van was purchased July 1, 2010 for $25,000 by paying $7,000 down in cash and signing a 6%, $18,000 note. The note requires monthly payments of $548 due by the 2nd of each month which includes the interest on the outstanding balance. The payments are made by automatic transfer on the 1st day of the month. The van has a 50,000 mile estimated useful life and an estimated salvage value of $5,000. KidKare uses the units of activity method of depreciation. The van was driven 600 miles in December. o. The office equipment was put into use on July 1, 2010. It has a five-year estimated useful life and a $400 estimated salvage value. Kidcare uses the double-declining balance method to depreciate it. (Round depreciation to the nearest month.) p. The play equipment was purchased July 1, 2010. It has a ten-year estimated useful life and a $200 estimated salvage value. Kidcare depreciates it using the straight-line method. (Round depreciation to the nearest month.) q. Prepaid Insurance represents the remaining seven months (December through June) on a one-year liability policy purchased July 1, 2010 for $720. r. KidKare estimates uncollectible accounts at .4% (or .004) of total childcare revenue. (Hint: Calculate bad debt expense for the entire six months. Then subtract the amount already recognized to calculate the amount to be added to bad debt expense for December.) s. KidKare is subject to a 30% income tax rate on net earnings. t. The December 23rd balance in Account Receivable is related to the care of two children, who abruptly stopped care in late November and whose home address is no longer valid. Attempts to collect are still being made. u. The Account Payable amount is related to a supplies purchase made earlier in December. It is expected to be paid in early January. v. For financial reporting purposes $5,792 of the remaining balance on the note is considered ?current,? the rest is considered ?long-term.? Required: Using either the MS Word file provided or the MS Excel file provided. (Round all final results to the nearest dollar amount.) 1. Make the appropriate journal entries for December 24 through 31. Use journal page G15. (You may exclude explanations.) 2. Post the journal entries to the general ledger. 3. Journalize and post the adjusting entries. Use journal page G16. (Show calculations as the explanation in the journal.) 4. Prepare an adjusted trial balance as of December 31, 2010. 5. Prepare an Income Statement and Retained Earnings Statement for the six months fiscal period ending December 31, 2010 and a Balance Sheet as of December 31, 2010, in good form (including an income statement with operating income and income before taxes subtotals shown and a classified balance sheet). 6. Journalize and post closing entries for December 31, 2010. Use journal page G17. 7. Prepare a post-closing trial balance as of December 31, 2010.,THIS IS THE UPLOADED FILE TO THE ONE THAT WAS EMBEDDED,SURE SO 12 NOON ON SUNDAY.,is there a specific way to extend the deadline hours?
Question 2
"1. Consider a bank with a national charter that is part of the Federal Reserve System. It will be primarily A. Regulated by the OCC B. Regulated by the Fed C. Regulated by the FDIC D. Regulated by the National Bank of the United States 2. The federal funds rate is the interest rate in the market for A. Federal government loans B. Loans of reserves between banks C. Loans from the Fed to banks D. Federal agency securities 3. Which of the following are the most liquid assets on a bank balance sheet? A. Demand deposits B. Reserves C. Loans from the Federal Reserve D. Loans from the Federal Reserve 4. Say that you deposited $100 in cash that you found in an abandoned house in your checking account. Which of the following would happen to the reserves in your bank, assuming a ten percent reserve requirement? A. Required reserves would increases by $100 B. Actual reserves would rise by 100 C. Excess reserves would increase by $ 100 D. Required reserves would fail by $10 5. The ?discount loans? account A. Is an asset to the Fed and an asset to the banking system B. Is an asset to the Fed and a liability to the banking system C. Is a liability to the Fed and an asset to the banking system D. Is a liability to the Fed and a liability to the banking system 6. Which of the following would most likely be true under the Lombard system? A. The Fed charges 2.5% for loans to banks but pays more than a 2.75% premium on bonds it buys from banks. B. Banks charge 3.5% on loans to each other, while the discount rate is 4% C. The federal funds rate is 3.5%, while banks charge each other 4% for loans D. The discount rate is 3.5, while banks charge each other 4% for loans 7. Which one of those ratios did we say changed wery little, no matter what was going in the banking industry or the economy? A. Return on equity B. Leverage ratio C. Net interest margin D. Efficiency ratio 8. An economist looks at a bank?s balance sheet, then subtracts total liabilities from total assets and divides the result by total assets. The economist is analyzing the bank?s A. Interest rate risk B. Liquidity (risk) C. Credit risk D. Leverage risk 9. If we want to know if a bank will be able to handle unforeseen changes in interest rates, we calculate A. leverage risk B. Interest rate risk C. Credit risk D. The GAP ratio 10. An economist looks at a bank?s balance sheet, then subtracts total liabilities from total assets and divides the result by total assets. The economist is analyzing the bank?s A. Interest rate risk B. Liquidity (risk) C. Credit risk D. Leverage risk 11. 1913 is notable in monetary economics because A. That?s when the Federal Reserve was created B. The marked the end of the Free Banking Era C. That marked the beginning of the dual Banking system D. All of the above are true 12. The Board of Governors A. Receives all its funding from Congress B. Is composed of seven members C. Owns the Federal Reserve- on paper, at least D. Has a chairman whose term coincides with that of the President of the United States 13. Select all of the situations where the bank described is in violation of reserve laws. Assume in each case that the bank has $60,000 in liabilities, $1000 in US government bonds, $15,000 in checking, $700 Deposit in the Fed, and $5000 in saving accounts. Anything not given should be assumed to be $0. A. The bank has actual reserves of $1500 B. The bank has cash in the amount of $825 C. The bank finds that its excess reserves are a negative number D. The bank has cash in its vaults equal to the amount of its deposit in Fed E. The band keeps 6% of its demand deposits as cash. F. The entire economy has $2000 in cash, 10% of which is held by this bank and the rest is held by the public G. None of these indicate violation of reserves laws. 14. Which of the following is NOT true about tight money policy? A. We do it to fight inflation B. A higher reserve requirement ratio could be used to enact it C. Its goal is to increase deman D. The Fed sells in the open market to do so 15. A famous and filthy rich chef brags in an interview that he keeps his riches in many different bank accounts across the country. ?After all,? he says, ?if your bank goes under, you are only guaranteed $250,000 to be paid back to you.? Why would most economists disagree with this famous chef? "
Question 3
Ques. 7) For the year ending June 30, 2008, the Austin Corporation has current assets of $ 275,000 and total assets of $ 900,000. It also has current liabilities of $ 150,000, equity of $ 200,000, and retained earnings of $ 100,000. The marginal tax rate for the firm is 30%. How much long-term debt does the firm have? a) $ 250,000 b) $ 350,000 c) $ 315,000 d) $ 450,000 Ques. 26) Your uncle promises to give you $550 per quarter for the next five years starting today. How much is his promise worth right now if the interest rate is 8% compounded quarterly? a. $9,173.14 b. $13,363.57 c. $13,630.84 d. $8,993.27 Ques. 27) Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? a. The periodic rate of interest is 1.5% and the effective rate of interest is 3%. b. The periodic rate of interest is 6% and the effective rate of interest is greater than 6%. c. The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. d. The periodic rate of interest is 3% and the effective rate of interest is 6%. e. The periodic rate of interest is 6% and the effective rate of interest is also 6%.
Question 4
I already answer the problems below but I need help to make sure if they are correct and if not if someone can help me please in finding out what the correct answer is. 1. Which of the following is always reported as governmental fund revenue? a. Taxes b. Fines and forfeitures c. Special assessments d. Payments in lieu of taxes (assume the payments are essentially charges for services). e. All of the above are properly reported as governmental fund revenues (answer) 2. Generally, sales tax revenues should be recognized by a local government in the period. a. In which the local government receives the cash b. That the underlying sale occurs, whether or not the local government receives the cash in that period. c. In which the state?which collects all sales taxes in the state?receives the cash from the collecting merchants (answer) d. In which the state?which collects all sales taxes in the state?receives the cash from the collecting merchants if the local government collects the taxes from the state in that period or soon enough in the next period to be used as a resource for payment of liabilities incurred in the first period. 3. On June 1, 20X4, a school district levies the property taxes for its fiscal year that will end on June 30, 20X5. The total amount of the levy is $1,000,000, and it is expected that 1% will be uncollectible. Of the levy, $250,000 is collected in June 20X4 and another $500,000 is collected in July and August 20X4. What amount of property tax revenue associated with the June 1, 20X4, levy should be reported as revenue in the fiscal year ending June 30, 20X4? a. $0 b. $750,000 c. $760,000 (Answer) d. $990,000 4. A city levied $2,000,000 of property taxes for its current fiscal year. The city collected $1,700,000 cash on its tax receivable during the year and granted $72,000 in discounts to taxpayers who paid within the legally established discount period. It is expected that the city will collect another $88,000 on these taxes receivable during the first two months of the next fiscal year. One percent of the tax levy is expected to be uncollectible. What amount of property tax revenues should the city report for the current fiscal year? a. $1,788,000 (answer) b. $1,860,000 c. $1,980,000 d. $2,000,000 5. What would the answer be to 4 if the city also collected $100,000 of the prior year?s taxes during the first two months of the current fiscal year and another $53,000 of the prior year?s taxes during the remainder of the current year? a. $1,788,000 b. $1,860,000 c. $1,941,000 (answer) d. $1,980,000 6. A count received $3,000,000 from the state. $1,500,000 of the $3,000,000 was received under an entitlement program and was not restricted as to use. The other $$1,500,000 was received under a grant agreement that requires the funds to be used for specific health and welfare programs. The county accounts for the resources from both of these programs in a Special Revenue Fund. Expenditures of that fund that qualified under the grant agreement totaled $900,000 in the year that the grant and entitlement were received. What amount of revenues should the county recognize in that year with respect to the entitlement and the grant? a. $0 b. $900,000 c. $1,500,000 (answer) d. $1,800,000 e. $2,400,000 7. A Special Revenue Fund expenditure of $40,000 was initially paid from and recorded in the General Fund. The General Fund is now being reimbursed. The General Fund should report a. Revenues of $40,000 (answer) b. Other financing sources of $40,000 c. a $40,000 reduction in expenditures d. other changes in fund balances of $40,000 e. transfers in of $40,000 8. A state received a gift of $80,000 of stocks and bonds from a private donor. The General Fund statement of revenues, expenditures, and changes in fund balance should report a. Revenues of $80,000 b. Other financing sources of $80,000 (answer) c. Special items for all such gifts d. Extraordinary items for all such gifts 9. A city has formalized tax liens of $50,000 against a property on which there are delinquent taxes receivable. The estimated salable value of the property is $39,000. The remaining total balances in Property Taxes Receivable?Delinquent and the related allowance are $113,000 and $28,000, respectively. What amount should be reclassified from allowance for uncollectible delinquent taxes to allowance for uncollectible tax liens? a. $0 (answer) b. $11,000 c. $28,000 d. $8,589 10. If the city in the previous question decides to keep the property for its own use, what amount of expenditures should be recognized? a. $0 b. $39,000 c. $50,000 (answer) d. None of the above
Question 5
The Aleander Company plans to issue $20,000,000 of 20-year bonds next June. The company's current cost of debt is 10 percent. However, the firm's financial manager is concerned that interest rates will increase in coming months, and has decided to take a short position in U. S. government t-bond futures. The following settle data are available for t-bond futures. Delivery Month Settle (1) (5) Dec 102-17 Mar 101-01 June 100-12 a. Calculate the current value of the futures position. b. Calculate the implied interest rate based on the current value of the futures position c. Interest rates increase as expected, by 2 percentage points. Calculate the present value of the futures position based on the rate calculated above plus the 2 points. d. Calculate the gain or loss on the futures position. e. Calculate the present value of the corporate bonds if rates increase by 2 percentage points. f. Calculate the gain or loss on the corporate bond position. g. Calculate the overall net gain or loss.,please do assignments in excel,Pierre Imports will be liquidated. Its current balance sheet is shown below. Fixed assets are sold for $1,000,000 and current assets are sold for $600,000. All fixed assets are pledged as collateral for mortgage bonds. Subordinated debentures are subordinate only to notes payable. Trustee costs are $100,000. Before Before Default Balance Sheet Default Current Assets 1,200,000 Accounts payable 400,000 Net fixed assets 1,800,000 0 Accrued taxes 80,000 Accrued wages 60,000 Notes payable 60,000 Total current liabilities 600,000 First-mortgage bonds 900,000 Second-mortgage bonds 400,000 Debentures 500,000 Subordinated debentures 300,000 Common stock 200,000 Retained earnings 100,000 Total assets 3,000,000 - Total claims 3,000,000 a. How much will SHs receive? - b. How much will mortgage bondholders receive? - c. How much will priority creditors receive?
